Cricut (NASDAQ:CRCT) Releases Quarterly Earnings Results, Beats Estimates By $0.08 EPS

Cricut (NASDAQ:CRCT) posted its earnings results on Tuesday. The company reported $0.13 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.08, FiscalAI reports. The firm had revenue of $188.62 million for the quarter, compared to the consensus estimate of $172.02 million. Cricut had a return on equity of 26.66% and a net margin of 13.42%.

Here are the key takeaways from Cricut’s conference call:

• Q3 revenue rose 11% year over year to $188.6 million, with products revenue up 17% and platform revenue up 4%. Connected-machine sell-through increased double digits for a second consecutive quarter, supported by Maker 5, StickerPix and continued demand for existing machines.
• StickerPix showed encouraging early momentum after launching late in the quarter, attracting both existing Cricut customers and new users. Management expects the category to broaden the customer funnel and generate future consumables revenue, though it is initially investing to establish the brand in a competitive market.
• International revenue grew 30% and reached 28% of total sales, with strength in Europe, Australia, Asia and Latin America. Management identified international expansion, increased brand awareness and continued product innovation as key growth drivers through 2027 and beyond.
• Platform engagement remains mixed: active users grew 2%, while 90-day engaged users were flat and paid subscribers declined sequentially to just over 3.07 million, although management expects both subscribers and platform revenue to grow in Q4 and for the full year.
• Strong profitability and cash generation enabled a $0.70-per-share special dividend, a recurring $0.10-per-share semiannual dividend and authorization to replenish the stock-repurchase program up to $50 million. However, management cautioned that Q4 is typically the most promotional quarter, with lower margins expected and continued uncertainty around consumer demand.

Cricut Stock Up 2.0%

CRCT stock traded up $0.17 during trading on Thursday, reaching $9.05. The company’s stock had a trading volume of 1,148,332 shares, compared to its average volume of 645,933. The company’s fifty day moving average is $6.13 and its 200-day moving average is $4.89. The company has a market capitalization of $1.90 billion, a P/E ratio of 19.69 and a beta of 0.24. Cricut has a 1 year low of $3.73 and a 1 year high of $9.70.

Insider Activity at Cricut

In other news, CEO Ashish Arora sold 60,000 shares of the stock in a transaction on Friday, October 23rd. The shares were sold at an average price of $6.26, for a total value of $375,600.00. Following the sale, the chief executive officer owned 4,908,740 shares in the company, valued at $30,728,712.40. This represents a 1.21% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Ryan Harmer sold 10,000 shares of the firm’s stock in a transaction on Tuesday, August 25th. The stock was sold at an average price of $5.70, for a total transaction of $57,000.00. Following the transaction, the insider directly owned 314,428 shares of the company’s stock, valued at approximately $1,792,239.60. This trade represents a 3.08% decrease in their position. Additional details regarding this sale are available in the official SEC disclosure. In the last quarter, insiders have sold 610,000 shares of company stock worth $3,613,800. Company insiders own 16.48% of the company’s stock.

Analysts Set New Price Targets

CRCT has been the subject of a number of recent analyst reports. Morgan Stanley restated an “underweight” rating and issued a $3.70 price objective on shares of Cricut in a research report on Wednesday, August 5th. The Goldman Sachs Group began coverage on Cricut in a research report on Wednesday, August 19th. They set a “sell” rating and a $4.50 target price on the stock. Zacks Research downgraded Cricut from a “strong-buy” rating to a “hold” rating in a research note on Monday, October 5th. Finally, Weiss Ratings raised Cricut from a “hold (c)” rating to a “hold (c+)” rating in a report on Tuesday. Two analysts have rated the stock with a Hold rating and four have issued a Sell rating to the company. According to MarketBeat, the stock presently has a consensus rating of “Strong Sell” and a consensus price target of $4.07.

About Cricut

Cricut, Inc develops and sells connected cutting machines and related products for do-it-yourself crafting, personalization and small-scale creative production. Its systems are designed to cut, draw, score and apply materials such as paper, vinyl, fabric, leather and iron-on transfers, enabling users to create customized home décor, apparel, gifts and other projects.

The company’s product portfolio includes Cricut smart cutting machines, heat presses, specialized tools and a broad range of consumable materials.